§ 25-4-213. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
§ 25‑4‑213. Finalpayment of item by payor bank; when provisional debits and credits becomefinal; when certain credits become available for withdrawal.
(a) An item is finallypaid by a payor bank when the bank has first done any of the following:
(1) Paid the item incash;
(2) Settled for the itemwithout having a right to revoke the settlement under statute, clearing‑houserule, or agreement; or
(3) Made a provisionalsettlement for the item and failed to revoke the settlement in the time andmanner permitted by statute, clearing‑house rule, or agreement.
(b) If provisionalsettlement for an item does not become final, the item is not finally paid.
(c) If provisionalsettlement for an item between the presenting and payor banks is made through aclearing house or by debits or credits in an account between them, then to theextent that provisional debits or credits for the item are entered in accountsbetween the presenting and payor banks or between the presenting and successiveprior collecting banks seriatim, they become final upon final payment of theitem by the payor bank.
(d) If a collectingbank receives a settlement for an item which is or becomes final, the bank isaccountable to its customer for the amount of the item and any provisionalcredit given for the item in an account with its customer becomes final.
(e) Subject to (i)applicable law stating a time for availability of funds, and (ii) any right ofthe bank to apply the credit to an obligation of the customer, credit given bya bank for an item in a customer's account becomes available for withdrawal asof right:
(1) If the bank hasreceived a provisional settlement for the item, when the settlement becomesfinal and the bank has had a reasonable time to receive return of the item andthe item has not been received within that time.
(2) If the bank is boththe depositary bank and the payor bank, and the item is finally paid, at theopening of the bank's second banking day following receipt of the item.
(f) Subject toapplicable law stating a time for availability of funds and any right of a bankto apply a deposit to an obligation of the depositor, a deposit of moneybecomes available for withdrawal as of right at the opening of the bank's nextbanking day after receipt of the deposit. (1899, c. 733, s. 137; Rev.,s. 2287; C.S., s. 3119; 1949, c. 954; 1965, c. 700, s. 1; 1995, c. 232, s. 2.)